Quarterly report pursuant to Section 13 or 15(d)

Regulatory Matters

v3.3.0.814
Regulatory Matters
 9 Months Ended
Sep. 30, 2015
Banking and Thrift [Abstract]  
Regulatory Matters
Regulatory Matters

Risk-Based Capital

In July 2013, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation approved the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act changes. The rules revise minimum capital requirements and adjust prompt corrective action thresholds. The rules also revise the regulatory capital elements, add a new common equity Tier I capital ratio, and increase the minimum Tier I capital ratio requirement. The revisions permit banking organizations to retain, through a one-time election, the existing treatment for accumulated other comprehensive income. Additionally, a new rule on the capital conservation buffer will be implemented beginning January 1, 2016. Under the final rules, institutions are subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if certain capital levels fall below newly required amounts. The rules became effective January 1, 2015 for smaller, non-complex banking organizations with full implementation of certain deductions and adjustments to regulatory capital through January 1, 2019. All prior period data is based on Basel I rules.

The capital ratios of Hanmi Financial and the Bank as of September 30, 2015 and December 31, 2014 were as follows:
 
Actual
 
Minimum
Regulatory
Requirement
 
Minimum to Be
Categorized as
“Well Capitalized”
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
(in thousands)
September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
Total capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
487,613

 
14.75
%
 
$
264,425

 
8.00
%
 
 N/A

 
N/A

Hanmi Bank
$
484,968

 
14.69
%
 
$
264,078

 
8.00
%
 
$
330,097

 
10.00
%
Tier 1 capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
445,955

 
13.49
%
 
$
198,319

 
6.00
%
 
 N/A

 
N/A

Hanmi Bank
$
443,364

 
13.43
%
 
$
198,058

 
6.00
%
 
$
264,078

 
8.00
%
Common equity Tier 1 capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
445,955

 
13.49
%
 
$
148,739

 
4.50
%
 
 N/A

 
N/A

Hanmi Bank
$
443,364

 
13.43
%
 
$
148,544

 
4.50
%
 
$
214,563

 
6.5
%
Tier 1 capital (to average assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
445,955

 
11.19
%
 
$
159,401

 
4.00
%
 
 N/A

 
N/A

Hanmi Bank
$
443,364

 
11.14
%
 
$
159,196

 
4.00
%
 
$
198,995

 
5.00
%
December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
Total capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
493,598

 
15.89
%
 
$
248,501

 
8.00
%
 
 N/A

 
N/A

Hanmi Bank
$
470,934

 
15.18
%
 
$
248,157

 
8.00
%
 
$
310,196

 
10.00
%
Tier 1 capital (to risk-weighted assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
454,582

 
14.63
%
 
$
124,250

 
4.00
%
 
 N/A

 
N/A

Hanmi Bank
$
431,971

 
13.93
%
 
$
124,078

 
4.00
%
 
$
186,118

 
6.00
%
Tier 1 capital (to average assets):
 
 
 
 
 
 
 
 
 
 
 
Hanmi Financial
$
454,582

 
10.91
%
 
$
166,600

 
4.00
%
 
 N/A

 
N/A

Hanmi Bank
$
431,971

 
10.39
%
 
$
166,332

 
4.00
%
 
$
207,915

 
5.00
%